Revenue Management system Design & Implementation Project

Georgia Tech Faculty advisor: Dr. Mark Ferguson Team Members: Narasimhadevara Prabhakar Ayanambakkam Nambi Andiran Bharathram Srinivasan Govindan Praveesh

Industry overview ,[object Object],[object Object],[object Object],[object Object]

How do we build micro-markets? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],Types of services

Segment based strategies Customized Pricing model Capacity based Revenue Management

How is the Demand Captured? ,[object Object],[object Object],[object Object]

Customized Pricing in Competitive Settings The General Model Objective: Maximize Expected Profits Deal Contribution Function : Bid-Response Function:

Segmentation Variables: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Market Segmentation ,[object Object],[object Object],[object Object],Age group distribution Distribution for Lead source

Market Segmentation: ,[object Object],[object Object],[object Object],[object Object],Distribution of Marital Status Fig 3

The Logit Model Price-Response Curve ,[object Object],Price coefficient intercept Segmentation variables

Finding the optimal price ,[object Object],Expected Profit Prob we Win the customer over Unit Margin Profit(p)= (p)*(p-c)

Most popular procedures: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],High Revenue Item

Rhinoplasty(Nose Reshaping) ,[object Object],[object Object],[object Object],[object Object]

Spa related activities & Minimally Invasive Cosmetic procedures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Spa related activities & Minimally Invasive Cosmetic procedures

[object Object],[object Object],[object Object],[object Object],Week-end customers Week-day customers The age distribution shift: Suggests older customers have flexibility to move into week-days Spa related activities & Minimally Invasive Cosmetic procedures

Results / suggestions: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Future scope ,[object Object],[object Object],[object Object]

Conclusion ,[object Object],[object Object],[object Object],[object Object]

References ,[object Object],[object Object],[object Object],[object Object],[object Object]

Revenue Management system Design & Implementation Project

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